This article describes how to set up the rates for calculating US taxes, Social Security, Medicare,etc.
For the latest information about developments related to Pub. 15-T, such as legislation enacted after it was published, go to https://www.irs.gov/forms-pubs/about-publication-15-t
Social Security and Medicare Taxes
Tax rates and the social security wage base limit. Social Security and Medicare taxes have different rates and only the social security tax has a wage base limit. The wage base limit is the maximum wage subject to the tax for the year.
Rates
(reference: 2020 Publication 15 (irs.gov), 2022 Publication 15T, )
2022
Social Security Tax Rate
Social Security tax rate is the same as in 2021 - 6.2% (amount withheld) each for the employer and employee (12.4% total)
Social security wage base limit is $ 147 000
Medicare Tax Rate
Medicate and Additional Medicare tax rates and limits (Additional Medicare) stay the same as in year 2020/ 2021
401k Pension plan Contribution Rate
401k Contribution limit has increased to $ 20 500 (from $ 19 500 in 2020)
401k Catch-up limit remains the same - $ 6 500
2021
Social Security Tax Rate
Social Security tax rate is the same as in 2020 - 6.2% (amount withheld) each for the employer and employee (12.4% total)
Social security wage base limit is $ 142 800
2020
Social Security Tax Rate
Social Security tax rate is 6.2% (amount withheld) each for the employer and employee (12.4% total)
Social security wage base limit is $137,700
Medicare Tax Rate
1.45% (amount withheld) each for the employee and employer (2.9% total)
There is no wage base limit for Medicare Tax; all covered wages are subject to Medicare Tax
Additional Medicare Tax withholding
0.9% Additional Medicare Tax in excess of $200,000 in a calendar year
No employer share for Additional Medicare Tax ( go to this site for other information about additional Medicare Tax IRS.gov/ADMT)
2020
Top organization unit > Rates: define Global Rates used for calculation of US taxes and contributions:
Tax Table Reference
There are two rate options to follow for automated payroll.
STANDARD Withholding Rate Schedules (Use these if the Form W-4 is from 2019 or earlier, or if the Form W-4 is from 2020 or later and the box in Step 2 of Form W-4 is NOT checked)
Form W-4, Step 2, Checkbox , Withholding Rate Schedules (Use these if the Form W-4 is from 2020 or later and the box in Step 2 of Form W-4 IS checked)
Every year the US tax rates are updated, to maintain the correct calculations in Adonis, when a new payroll year is opened, a new Tax Definition file must be imported to the system. Though, the new rates are never published before the year starts, and normally are either published in January or even later, to keep the calculations running in Adonis the Tax Definition file still has to be updated and imported to the system.
After the new rates are published, Adonis will create a new file for import. Please see files below by year.
2020 .Def Tax file
2021 .Def Tax file
2022 .Def Tax file
Import Tax def files
To import the tax definition file you have to do the following steps:
Download the file for the correct year from this article and store it somewhere you can access it
Go to Payroll | Tax Def Files | Import
Find the file and click Open
